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Kmart and Gap Show Radically Different Approaches To Holiday Advertising

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Lots of retailers take the season of good cheer to one-up each other to draw shoppers into their stores. The latest effort from Kmart -- a group of dudes decked out in festive Joe Boxer skivvies ringing, ahem, their bells-- is making the rounds in the blogosphere.

Drawing eyeballs and providing fodder for a host of cheeky double entendres (jingle balls and nutcrackers anyone?) is one thing. Translating to in-store sales is quite another.

Some shoppers believe “it goes way beyond good taste,” while others love it, according to a report by CBS Atlanta. Similar reactions surged around Kmart’s previous viral hits “Ship My Pants” and “Big Gas Savings” which collectively pulled in nearly 30 million viewers on YouTube.

Catchiness aside, viral videos are failing to boost sales at the store level. Kmart’s parent company Sears just reported revenues were down 7 percent to $8.27 billion in the third quarter. Revenue from stores open at least a year, a good indicator of the health of the business, fell 4 percent at Sears' outlets and 2.1 percent at Kmart stores.

In sharp contrast, Gap just launched a feel good campaign that doesn’t push clothes so much as concepts the global retailer believes in. Print and video  for the “Make Love” ads stresses the importance of diversity featuring the likes of Q-Tip, Connie Britton, Harry Belafonte, Waris Ahluwalia, and Cyndi Lauper and a group of extraordinarily talented teen musicians accompanying Tony Bennett designed to support the iconic crooner’s Exploring the Arts Foundation. It’s hard not to smile when they start performing “The Best Is Yet To Come.”

For Gap, better times are already here. The namesake brand along with sister chains Banana Republic, Athleta and Old Navy keeps posting sales increases  month after month. The third quarter was no exception as Gap Inc.’s net sales increased 3 percent versus last year, and comparable sales increased 1 percent.

Which campaign do you think will drive more sales this holiday season?